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Is there any way of establishing a Safe Harbor 401(k) Plan during the year, if the employer already sponsors a SIMPLE Plan? From my reading, if an employer sponsors a SIMPLE Plan then this is the only plan that can be maintained during the year. What are consequences of sponsoring both plans during the same calendar year? Hopefully, the IRS will change their position on this situtation, such as being able to convert a SIMPLE Plan to a Safe Harbor 401(k) Plan during the year.

Thanks, Joe

The consequence is that the SIMPLE contributions for that year would be disqualified and contributions to the SIMPLE for that year would be excess contributions